New nature of interest options available on Beneficial Ownership database

The Isle of Man Financial Services Authority (“the Authority”) is seeking to raise awareness of the Department of Enterprise’s (“the Department”) introduction of two new nature of interest options available for selection within the Island’s Database of Beneficial Ownership (“the Database”).

 

The two new natures of interest are:

    • ‘Control as Council Member’; and
    • ‘Control via other means’.

 

In order to provide further clarity, the Database now permits Nominated Officers to further distinguish between the different ways in which beneficial ownership by way of control can be exercised over a legal entity. The creation of these two new descriptors follows feedback received by the Authority, and shared with the Department, during an ongoing period of proactive outreach and oversight inspections, commencing 2023, to support and test relevant persons’ compliance with the Beneficial Ownership Act 2017 (“the Act”).

 

Whilst the management of the Database lies with the Department, the Authority is responsible for overseeing compliance with the requirements of the Act.

 

Section 4(1) of the Act states that ““beneficial owner” means a natural person who ultimately owns or controls a legal entity to which this Act applies, in whole or in part, through direct or indirect ownership or control of shares or voting rights or other ownership interest in that entity, or who exercises control via other means, and “beneficial ownership” is to be construed accordingly.”

 

It is hoped that the addition of these two natures of interest options will assist relevant persons when attempting to define and articulate the nature of the control held, or exerted, by a beneficial owner.

 

In February 2024, the Authority published that the Department had made an additional nature of interest available for use, ‘Control as Liquidator’.

 

With the addition of these two new categories, the full list of natures of interest available for selection are as follows:

    • Ownership;
    • Control;
    • Ownership and Control;
    • Control as Corporate Trustee;
    • Control as Council Member;
    • Control as Liquidator; and
    • Control via other means.

 

Relevant persons should consider whether, in the absence of any registrable beneficial owner via ownership or shareholding (for example, no single beneficial owner with a greater than 25% economic interest in a legal entity), any individual natural person is able to exert a sufficient level of Control via other means to cause them to be registrable.

 

For further information around the correct and appropriate use of the above natures of interest, please refer to the recently published Beneficial Ownership Act 2017 Guidance – December 2024.

 

Should you have any queries about the above, the Authority welcomes questions or feedback at beneficial.ownership@iomfsa.im.